Liquidity remains severely constrained, as demonstrated by a current ratio of 0.06 and a history of negative free cash flow, including a $4.8 million outflow in 2023Q2.
| Cash from Operations | -4.05M | -4.18M | -747.3K | -1.05M | -64K | 0 |
| Operating CF Margin % | - | - | - | - | - | - |
| Operating CF Growth % | -48.78% | -459.35% | 29.03% | -1545.31% | - | - |
| Net Income | -30.72M | -9.48M | -958.43K | -62.34M | -1.65M | -232K |
| Depreciation & Amortization | 0 | 0 | 0 | 0 | 0 | 0 |
| Stock-Based Compensation | 931K | 745K | 0 | 56.55M | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 25.54M | 3.51M | -1.52M | 0 | 0 | 0 |
| Working Capital Changes | 198K | 1.04M | 1.74M | 4.74M | 1.59M | 232K |
| Change in Receivables | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 957K | 869K | 290.38K | 0 | 0 | 0 |
| Cash from Investing | 0 | 0 | -2.1M | -107.1M | 0 | 0 |
| Capital Expenditures | 0 | 0 | -3 | 0 | 0 | 0 |
| CapEx % of Revenue | - | - | - | - | - | - |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | 0 | 0 | 3 | 0 | 0 | 0 |
| Cash from Financing | 4.31M | 3.4M | 2.1M | 1.11M | 64K | 0 |
| Debt Issued (Net) | 909K | 3.4M | 2.1M | 0 | 0 | 0 |
| Equity Issued (Net) | 0 | 0 | 0 | 1.02M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 3.4M | 0 | 0 | 96K | 64K | 0 |
| Net Change in Cash | 258K | -780K | -747.3K | 60K | 0 | 0 |
| Free Cash Flow | -4.05M | -4.18M | -747.3K | -1.05M | -64K | 0 |
| FCF Margin % | - | - | - | - | - | - |
| FCF Growth % | 44.22% | -459.35% | 29.03% | -1545.31% | - | - |
| FCF per Share | -0.15 | -0.15 | -0.04 | -0.08 | -0.00 | - |
| FCF Conversion (FCF/Net Income) | 0.13x | 1.27x | -1.32x | 0.02x | 0.04x | - |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 |
Capital Access and Dilution
According to reported financial statements, OCEA exhibits a profound disconnect between net income and operating cash flow, evidenced by a 2024Q1 net income of $13.0 million contrasted against a $485,000 cash outflow, highlighting the limited utility of GAAP earnings for assessing this pre-revenue entity's liquidity.
The wide variance between reported net income and operating cash flow suggests that non-cash accounting adjustments, likely related to the de-SPAC process and warrant valuations, are significantly distorting the bottom line. Investors should prioritize the operating cash flow metric as the primary indicator of the company's actual resource consumption rather than the volatile net income figures.
As reported in financial filings, OCEA's free cash flow remains consistently negative, with quarterly outflows reaching as high as $4.8 million in 2023Q2, underscoring the company's total reliance on external financing to sustain its pre-clinical research pipeline and administrative overhead in the absence of commercial revenue.
The lack of a positive free cash flow trajectory indicates that the company has yet to reach a value-inflection point where its intellectual property can generate self-sustaining capital. This persistent cash burn warrants close monitoring, as it necessitates frequent and potentially dilutive capital raises to maintain the current operational pace.
Based on quarterly data, OCEA's working capital changes have been highly erratic, swinging from a $1.6 million outflow in 2024Q4 to a $759,000 inflow in 2025Q1, which suggests that timing differences in payables and accruals are creating significant, unpredictable fluctuations in the company's short-term cash position.
These swings in working capital appear to be a byproduct of the company's project-based research model rather than operational efficiency. The inability to stabilize these cash movements may complicate management's ability to forecast liquidity needs accurately, increasing the risk of sudden cash crunches.
As disclosed in historical cash flow statements, OCEA utilized $51.6 million for share repurchases in 2023Q3, a move that appears counterintuitive for a pre-revenue biotech firm facing significant liquidity constraints and a persistent need for external funding to advance its clinical-stage assets toward regulatory milestones.
This capital deployment strategy raises questions regarding the prioritization of shareholder returns versus the funding of critical R&D programs. Investors should investigate whether such large-scale buybacks were intended to support the share price post-merger at the expense of the company's long-term cash runway.
Based on recent SEC filings, stock-based compensation consistently accounts for a meaningful portion of the company's expenses, with $186,000 recorded in 2025Q1, which effectively masks the true cash cost of talent acquisition and retention required to maintain the company's scientific advisory board and research operations.
While stock-based compensation is a non-cash expense, it represents a significant future dilution risk that is not fully captured in the cash flow statement. Analysts should adjust for these equity-based costs to better understand the true economic burn rate and the potential impact on future earnings per share.
Quick answers to the most common questions about buying OCEA stock.
Ocean Biomedical, Inc. (OCEA) generated $-4.2M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Ocean Biomedical, Inc. (OCEA) reported negative free cash flow of $4.2M in 2024, indicating capital requirements exceeded cash from operations.
Ocean Biomedical, Inc. (OCEA) spent $0.0M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.